If the reserve ratio is 4 percent, the money multiplier is equal to 25.
Answer the following statement true (T) or false (F)
True
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When business firms get to be too big, they are suffering from ____________________.
Fill in the blank(s) with the appropriate word(s).
In the aggregate production function Y = A , real business cycle theory treats ________ as the key independent variable
A) potential output B) productivity C) the capital stock D) the labor input
Over the past two centuries, the average annual rates of return were about
a. 5 percent for stocks and about 1.5 percent for short-term government bonds. b. 6 percent for stocks and about 2.5 percent for short-term government bonds. c. 8 percent for stocks and about 3 percent for short-term government bonds. d. None of the above is correct.
A derivative is a:
a. contract derived from a spot market rate. b. fixed exchange rate. c. flexible exchange rate. d. contract between firms for foreign currency.